Adding Space With Basement Remodeling

This guide covers adding additional living space with basement remodeling. Most homes in the Midwest have basements. Basement remodeling can add useful square footage and is a great investment in your home. Square footage space in the basement does not count when marketing and selling your home, but homeowners who have their basements remodeled will definitely get their investment worth. There are three types of basements. Just a standard basement with no windows, so there is no lighting, an English basement with windows, and a walk-out basement with windows and an exit to the home’s backyard. A remodeled basement on a home will normally add an additional $15,000 value to the home’s value. In the following paragraphs, we will cover adding additional living space with basement remodeling.

Cost of Adding Space With Basement Remodeling

The cost of basement remodeling depends on how fancy you want to make your basement. You can add a wet bar in your basement, an additional bedroom, an office, a standard bathroom, or a deluxe bathroom with jacuzzi, steam room, sauna. Or you can even have a gym in your basement. Walk-out basements have lots of lighting where you can deck it out and make it a functional in-law suite or guest suite.

You can also add a full kitchen when you do your basement remodeling where you can make it into an entertainment room for parties and weekend get together functions. Many homeowners do not have finished basements. Many just use it as storage when with a little creativity, they can do a basement remodeling and utilize every single square footage of their basements. For very little money, homeowners can convert it to a useful living space and have part of the basement converted to a spacious storage area. Click Here to apply for loans with us

Unfinished Basement Remodeling

Prior to hiring someone to do your basement remodeling or whether you plan on doing the basement remodeling yourself, make sure that your unfinished basement has no cracks in the foundation. Doing your basement remodeling is a big investment. You would not want to see any leaks due to cracks in the foundation after you have the walls covered up with insulation and drywall. It can be a major mess and be costly to do the demolition and correct the leak after you have finished your basement. Dustin Dumestre with F-1 Lenders, a dba of NEXA Mortgage and an associate contributing editor of GCA Forums says the following about basement remodeling:

Check with the previous owner and check if your basement leaks after heavy rains to see if there are any water seepage. Even if your basement is dry and waterproof, hire a basement waterproofing company to have your basement waterproofed.

Install a sump pump with a backup battery to make sure that your basement does not flood after a major storm and when the electricity goes out. Make sure you have a backup battery so the sump pump works. Make a list of things that are important to you such as a wet bar, playroom, gym, bathroom, guest bedroom, office, media room, storage, man cave, women cave, or other rooms you may want. The flooring type that you select is very important. Basements can leak so hardwood floors and carpeting may not be a good idea. Ceramic tiles are often recommended or other types of waterproof flooring.

Basement Remodeling: Choosing A Contractor

Basement remodeling can cost anywhere between $5,000 to over $50,000 depending on how unique you want to make it. You will need electricians, plumbers, HVAC professionals, and carpenters. Many handymen who are a jack of all trades can normally give you a great price for your basement remodeling. Make sure you check out the references of the general contractor you hire to do your basement remodeling.

Don’t just choose a carpenter out of an ad of your local free shopper newspaper and give them a down payment to do your basement remodeling. Just because a contractor has a very fancy website and is a smooth talker does not mean that they are reputable. Contractors in most states are not regulated like other professionals so take your time and not rush in hiring a contractor without checking out their references and make sure you Google the contractor and see their reviews and testimonials.

Financing Your Basement Remodeling

Financing your basement remodeling is another issue homeowners need to consider. Homeowners can see if they qualify for a home equity loan from a local bank. However, to qualify for a home equity loan or home equity line of credit, the homeowner will need equity in their home. Another option to financing your basement remodelling is by refinancing your home with an FHA 203k Rehab Loan where you can have the construction money for your repairs and your primary mortgage home loan all in one loan.

If you are a homeowner and are interested in getting approved for an FHA 203k Loan to do your basement remodeling, please contact us at GCA Forums Mortgage Group at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.

When shopping for a home, buyers will run into situations where the property they want to place an offer has many renovations that were done without Proper Building And Construction Permits. Remodeling kitchens and bathrooms without Proper Building And Construction Permits are no big deal. However, there are homes that had full renovations without Proper Building And Construction Permits.

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Typical Renovations Done Without Building Permits

Here are some examples of buying a home where home sellers have done without Proper Construction Permits. Renovated a basement and/or attic into a recreation area where is now living space. Renovated basement or attic into an in-law apartment with a functional full bathroom and full kitchen. Opened up the attic and installed a dormer where the square footage of the home is now substantially larger. Adding additional bathrooms and bedrooms.

Consequences of Renovating Without Proper Building and Construction Permits

Besides buying a home without proper building and construction permits, many homebuyers have grand plans of decorating and remodeling their newly purchased home after their close. Some home buyers who have recently closed on their new home purchase decide to remodel their home prior to moving in

Common Renovations By Homeowners

Basement remodeling is the most common and popular renovation by homeowners. Basic remodeling such as the following does not require permits or even if it does, most homeowners do not get building permits:

1. Painting
2. New Appliances
3. New flooring
4. Remodeling Kitchens and Bathrooms
5. Exterior remodeling such as painting, siding, landscaping
6. Driveway remodeling
7. Small one level decks and porches
8. New windows
9. Sofits/Fascia/Gutters/Downspouts
10. New Doors/Millwork

Many Homebuyers Buying House Do Basement Remodeling Without Permits

However, many homeowners knowingly do repairs and major renovations to their home without proper building and construction permits. Remodeling can be basic such as painting the interior and/or the exterior or interior of their home. Or it can be more extensive such as remodeling the kitchen, bathroom, or converting an unfinished attic or basement.

Basic remodeling such as painting does not require building and construction permits from the city or county building departments. However, building and construction permits may be required if major electrical, plumbing, and HVAC work is involved as well as structural changes to the home. Although doing a complete remodel on a kitchen may be basic, the city or county may require that homeowners pull a permit. The building department normally requires electricians and plumbers who work on a property to be licensed and bonded.

Basement Remodeling and Permit Requirements

These days, almost every remodeling project requires getting a permit.  Most homeowners disregard this and just do the work without getting building permits. City and/or County Building Departments get a large portion of their revenues from issuing building permits as well as levying fines for homeowners caught doing remodeling without permits.

Homeowners remodeling an unfinished basement or unfinished attic space and adding bedrooms, bathrooms, and kitchen, building, and construction permits will definitely be required. General Contractors may need licensing in some counties and not in others. The county or city building department may even ask homeowners for architectural drawings along with license and bonding information for electricians, plumbers, and heating and air conditioning technicians.

What Happens If I Do Not Get Construction Permits Basement Remodeling

Although the county and city may require building and construction permits to remodel kitchens, bathrooms, basements, and attics, many homeowners just do these projects and do not get the required permits. In the event homeowners get caught doing such work without obtaining the proper building and construction permit, the city or county can do a stop order. Homeowners will not go to jail

However, homeowners will be required to get the proper building and construction permits before they are able to restart work again. The city or county building department may impose a fine for doing work without the proper permits. Most of the time the way the city or county building departments find out is because a disgruntled neighbor calls the building department to complain about construction debris in the yard or due to noise. Connect with our loan officer for your inquiry

Advantages and Disadvantages of Obtaining Building and Construction Permit on Basement Remodeling

City and county building departments have two main goals in issuing and requiring building and construction permits. First, it is a safety issue and the government want to make sure that all work is done per code and there is no safety issues. I totally agree and recommend that homeowners get proper building and construction permits especially when there is electrical, plumbing, and HVAC work involved.

Secondly, building and construction permits cost money and it is a revenue source for the city or county. Whenever there is a permit taken out and major improvements are done to a particular property, the value of the home increases. With increased property values means higher property taxes which mean more revenue to the government. It is up to the homeowner whether they want to chance to do construction on their new home without getting the proper required building and construction permit.

Buying Home With Illegal Basement Remodeling Apartment in Chicago

The City of Chicago, Illinois has many two-unit buildings. Homebuyers buying a two to a four-unit building in Chicago will most likely run into a situation where there is a basement that has been converted into an illegal basement apartment. By illegal, it means that the unfinished basement has been converted to a basement apartment without permits. Many owners of two to four unit buildings normally do not get a permit when they start basement remodeling.

The City of Chicago Building Department normally ignores this and does not enforce it. However, there are some mortgage lenders that will have issues when a home buyer buys a two to four-unit building with an illegal basement apartment. Home Buyers can get 2 to 4 unit mortgage loans with illegal basement apartments. Worse comes to worst, the appraiser will require that the plumbing of the kitchen be disconnected and will classify it as a finished recreation room. Home Buyers who need to qualify for a mortgage with a property that has been renovated without proper building and construction permits, please contact us at GCA Forums Mortgage Group at 800-900-8569 or email us at gcho@gustancho.com.  If you need more information about basement remodeling, please do not hesitate to contact us. We are available 7 days a week, evenings, weekends, and holidays.

This guide on basement remodeling was updated on November 12th, 2024.